The law of supply implies that the supply curve is
upward sloping, meaning that as the price of a good increases, the quantity supplied of that good also increases, and vice versa.
upward sloping.
The law of supply states that there is a positive relationship between the price of a good or service and the quantity supplied, ceteris paribus (assuming all other factors remain constant). In other words, as the price of a good increases, suppliers are willing to supply more of that good, and as the price decreases, suppliers are willing to supply less.
This relationship is reflected in the supply curve, which is typically depicted as upward sloping on a graph. The horizontal axis of the graph represents the quantity of the good being supplied, and the vertical axis represents the price. As the price increases, the quantity supplied also increases, resulting in an upward-sloping curve. This is because suppliers are motivated to produce more goods at higher prices in order to maximize their profits.
However, it is important to note that the law of supply assumes that all other factors, such as input costs and technology, remain constant. If these factors change, it can shift the entire supply curve.
upward sloping. The law of supply states that there is a direct relationship between the price of a good and the quantity supplied, holding all other factors constant. This means that as the price of a good increases, producers are willing to supply more of it, and as the price decreases, producers are willing to supply less.
To understand why the supply curve is upward sloping, we can examine the behavior of producers in response to changes in price. When the price of a good rises, it becomes more profitable for producers to sell that good. As a result, producers have an incentive to increase production in order to take advantage of the higher prices and earn more revenue. This leads to an expansion of supply, meaning that more of the good is supplied at each price level.
On the other hand, when the price of a good falls, it becomes less profitable for producers to sell that good. In such a scenario, producers may reduce their production levels or even exit the market altogether. This contraction of supply leads to fewer units of the good being supplied at each price level.
As a result, the relationship between price and quantity supplied forms an upward sloping supply curve. The higher the price, the greater the quantity supplied, and the lower the price, the lower the quantity supplied. This reflects the behavior of producers as they respond to changes in the price of a good.